Gold heading north over its safe demand

Gold rose again on Wednesday after French-German proposals for the Euro-zone debt crisis failed to ease investors" concerns.

The price of gold for immediate delivery stuck at Rs 26,364 on Wednesday, as investors beset worries about the Europe"s financial crisis and slowing global growth, sought safety in the metals.

US stocks moved lower on Tuesday after Germany released its weak GDP data which grew just 0.2%. The press conference between German Chancellor Merkel and French President Sarkozy also came out with a mere proposal rather than any proper plan to restore the region"s fiscal and financial challenges to protect the economy.

All these factors boosted demand for precious metal more.

At the Multi Commodity Exchange, Gold for delivery in far-month April opened high at Rs 27,020 per 10 grams and made intra-day high of Rs 27,135 per 10 grams.

Gold for October delivery on MCX opened at Rs 26,260 per 10 grams and was trading between Rs 26,360 – Rs 26,362 per 10 grams around 13:40 p.m. IST. It made an intra-day high of Rs 26,384 per 10 grams during the day.